<body class="newsletter" >  <FONT FACE=ARIAL SIZE=2><BR> Welcome to the firm of <BR> <FONT FACE=ARIAL SIZE=2>Providing the following client services:</FONT><BR> <FONT FACE=ARIAL SIZE=4>Contact Information:</FONT><BR> <B>Firm Information</B><BR> Carol L. King & Associates, P.A.<BR> <style type="text/css"> body { background-image:url("files/watermark.gif"); background-attachment:fixed; background-repeat:no-repeat; background-position:top left; } </style>  <script type="text/javascript"> function initJQuery() { //if the jQuery object isn't available if (typeof(jQuery) == 'undefined') { if (typeof initJQuery.jQueryScriptOutputted == 'undefined') { //only output the script once.. initJQuery.jQueryScriptOutputted = true; //output the script (load it from google api) document.write("<scr" + "ipt type=\"text/javascript\" src=\"" + document.location.protocol + "//ajax.googleapis.com/ajax/libs/jquery/1.7.1/jquery.min.js\"></scr" + "ipt>"); } setTimeout("initJQuery()", 50); } } initJQuery(); </script> <script type="text/javascript" src="http://www.cchwebsites.com/cch_js/app_popup.js"></script> <div id="tax_alerts" name="tax_alerts" style="float: right;"><link href="http://www.cchwebsites.com/cch_css/tax_alerts.css" rel="stylesheet" type="text/css" media="all" /> <script type="text/javascript" src="http://www.cchwebsites.com/cch_js/app_popup.js"></script> <script language="javascript" src="content/apps/scroll_alert/scroll.js"></script> <script language="javascript" src="content/apps/scroll_alert/scroll.tpl0.js"></script> <link rel="stylesheet" href="content/apps/scroll_alert/scroll0.css"> <div id="taxAlertPanel_Heading">Tax Alerts</div> <div id="taxAlertPanel"> <div class="taxAlerts_title3" ><SCRIPT language="JavaScript" type="text/javascript">  </SCRIPT> </div> <div class="taxAlerts_title_TB">Tax Briefing(s)</div><div class="taxAlerts_title3" ><a href="/content/pdf/tax_brief/US_2011TxYrInReview.pdf" target="_blank">2011 Tax Year In Review</a></div> <div class="ticker" id="news" > <div id = "ta_0" style="display: none;"><a href = "javascript: void(0)" onClick="popup_app('http://www.clkcpa.com/content/apps/taxalert_popup.php?id=699');" >2011 reporting for 2010 conversions to Roth accounts explained</a><br />Taxpayers who convert a traditional IRA to a Roth IRA must include the amount transferred in their gross income and pay tax accordingly. For the 2010 tax year, the IRS created spec...</div> <div id = "ta_1" style="display: none;"><a href = "javascript: void(0)" onClick="popup_app('http://www.clkcpa.com/content/apps/taxalert_popup.php?id=702');" >Auto/ truck maximum values updated for 2012 cents-per-mile/fleet-average valuation</a><br />Taxpayers whose employers provide company cars (or trucks and vans) for their personal use must factor that usage into their gross income. Personal use of a vehicle provided by an employer is consi...</div> <div id = "ta_2" style="display: none;"><a href = "javascript: void(0)" onClick="popup_app('http://www.clkcpa.com/content/apps/taxalert_popup.php?id=703');" >IRS audits of higher income taxpayers increase</a><br />The IRS audited one in eight individuals with incomes over $1 million in fiscal year (FY) 2011. While the overall audit coverage rate for individuals remained steady at just over one percent, the a...</div> <div id = "ta_3" style="display: none;"><a href = "javascript: void(0)" onClick="popup_app('http://www.clkcpa.com/content/apps/taxalert_popup.php?id=700');" >IRS eliminates tort test for exclusion of personal injury/sickness damages</a><br />Recent IRS regulations provide that damages received from a lawsuit or settlement as compensation for personal physical injuries or sickness may be excluded from gross income, even...</div> <div id = "ta_4" style="display: none;"><a href = "javascript: void(0)" onClick="popup_app('http://www.clkcpa.com/content/apps/taxalert_popup.php?id=701');" >Tax gap grows to $450 billion; compliance rate holds steady</a><br />The "gross tax gap," or the amount of tax owed to the U.S. government that is not paid on time, climbed from $345 billion in Tax Year (TY) 2001 to $450 billion in TY 2006, the IRS has reported. (Be...</div> <div id = "ta_5" style="display: none;"><a href = "javascript: void(0)" onClick="popup_app('http://www.clkcpa.com/content/apps/taxalert_popup.php?id=292');" >NC - Guidelines issued on DOR’s authority to adjust net income or require filing of combined return</a><br />The North Carolina Department of Revenue has released a corporation income tax directive that addresses the Department’s authority to require corporate taxpayers to eliminate...</div> <SCRIPT LANGUAGE="JavaScript"> Tscr_ITEMS0 = [ { 'content' : document.getElementById('ta_0').innerHTML, 'pause_b' : 3, 'pause_a' : 0 }, { 'content' : document.getElementById('ta_1').innerHTML, 'pause_b' : 3, 'pause_a' : 0 }, { 'content' : document.getElementById('ta_2').innerHTML, 'pause_b' : 3, 'pause_a' : 0 }, { 'content' : document.getElementById('ta_3').innerHTML, 'pause_b' : 3, 'pause_a' : 0 }, { 'content' : document.getElementById('ta_4').innerHTML, 'pause_b' : 3, 'pause_a' : 0 }, { 'content' : document.getElementById('ta_5').innerHTML, 'pause_b' : 3, 'pause_a' : 0 }, ];</script> <SCRIPT LANGUAGE="JavaScript">  </SCRIPT> <br /><br /> </div> </div> <br /><br /><br /> </div> <script type="text/javascript" src="http://www.cchwebsites.com/cch_js/newsletters.js"></script> <div class = "news_title"> <a name="7390"></a> <a href = "javascript: void(0)" onClick="showhidearticle('7390');" class ="news_link">May 2011 Carol L. King & Associates Newsletter</a> </div> <div class = "news_description" id="ns7390" style="display:block;"><a href="content/client/7dcc679bbce70981c9324c4a61088858/uploads/may-2011-newsletter.pdf">Please enjoy this information!</a></div> <div class = "news_description" id="nl7390" style="display:none;"><div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('7390');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="7389"></a> <a href = "javascript: void(0)" onClick="showhidearticle('7389');" class ="news_link">June 2011 Carol L. King & Associates Newsletter</a> </div> <div class = "news_description" id="ns7389" style="display:block;"><a href="content/client/7dcc679bbce70981c9324c4a61088858/uploads/june-2011-newsletter.pdf">Please enjoy this information!</a></div> <div class = "news_description" id="nl7389" style="display:none;"><div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('7389');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="7333"></a> <a href = "javascript: void(0)" onClick="showhidearticle('7333');" class ="news_link">July 2011 Carol L. King & Associates Newsletter</a> </div> <div class = "news_description" id="ns7333" style="display:block;"></div> <div class = "news_description" id="nl7333" style="display:none;"><div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('7333');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="681"></a> <a href = "javascript: void(0)" onClick="showhidearticle('681');" class ="news_link">Sweeping new IRS "repair regulations" impact most businesses</a> </div> <div class = "news_description" id="ns681" style="display:block;">The IRS has released much-anticipated temporary and proposed regulations on the capitalization of costs incurred for tangible property. They impact how virtually any business writes off costs that repair, maintain, improve or replace any tangible property used in the business, from office furniture to roof repairs to photocopy maintenance and everything in between. They apply immediately, to tax years beginning on or after January 1, 2012.</div> <div class = "news_description" id="nl681" style="display:none;"><p>The IRS has released much-anticipated temporary and proposed regulations on the capitalization of costs incurred for tangible property. They impact how virtually any business writes off costs that repair, maintain, improve or replace any tangible property used in the business, from office furniture to roof repairs to photocopy maintenance and everything in between. They apply immediately, to tax years beginning on or after January 1, 2012.</p><p>These so-called “repair regulations” are broad and comprehensive. They apply not only to repairs, but to the capitalization of amounts paid to acquire, produce or improve tangible property. They are intended to clarify and expand existing regulations, set out some bright-line tests, and provide some safe harbors for deducting payments.</p><p>The regulations are an ambitious effort to address capitalization of specific expenses associated with tangible property. The regulations affect manufacturers, wholesalers, distributors, and retailers—everyone who uses tangible property, whether the property is owned or leased. The rules provide a more defined framework for determining capital expenditures.</p><p>Most taxpayers will have to make changes to their method of accounting to comply with the temporary regulations and will need to file Form 3115. Taxpayers who filed for a change of accounting method following the issuance of the 2008 proposed regulations will probably have to change their accounting method again.</p><p>The IRS has promised to issue two revenue procedures that will provide transition rules for taxpayers changing their method of accounting, including the granting of automatic consent to make the change. The regulations require taxpayers to make a Code Sec. 481(a) adjustment; this means that taxpayers will have to apply the regulations to costs incurred both prior to and after the effective date of the regulations.</p><p>The new regulations provide rules for materials and supplies that can be deducted, rather than capitalized. The rules provide several methods of accounting for rotable and temporary spare parts, and allow taxpayers to apply a de minimis rule so that they can deduct materials and supplies when they are purchased, not when they are consumed.</p><p>Costs to acquire, produce or improve tangible property must be capitalized. The regulations address moving and reinstallation costs, work performed prior to placing property into service, and transaction costs. Generally, costs of simply removing property can be deducted, but costs of moving and then reinstalling property may have to be capitalized.</p><p>To determine whether a cost incurred for property is an improvement, it is necessary to determine the unit of property. Generally, the larger the unit of property, the easier it is to deduct expenses, rather than have to capitalize them. The regulations provide detailed rules for determining the unit of property for buildings and for non-building tangible property. For buildings, the IRS identified eight component systems as separate units of property, requiring more costs to be capitalized. However, the new rules also provide for deducting the costs of property taken out of service, by treating the retirement as a disposition.</p><p>The new regulations require virtually every business to review how repairs, maintenance, improvements and replacements are handled for tax purposes, with both mandatory and optional adjustments made to past treatment as appropriate.</p><p><em>Please feel free to call this office for a more targeted explanation of how these new regulations impact your business operations.</em></p> <div align="JUSTIFY"><hr noshade="noshade" size="1"><font size="1" face="Arial">If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.</font></div> <div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('681');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="680"></a> <a href = "javascript: void(0)" onClick="showhidearticle('680');" class ="news_link">Congress begins work on payroll tax extension as White House unveils new proposals</a> </div> <div class = "news_description" id="ns680" style="display:block;">The fate of the employee-side payroll tax cut along with a host of tax extenders and other expired provisions could be decided in coming weeks. A conference committee of House and Senate members is negotiating a full-year extension of the payroll tax cut and could add some or all of the tax extenders to a final package. Lawmakers also could extend the payroll tax cut without acting on any tax incentives.</div> <div class = "news_description" id="nl680" style="display:none;"><p><strong></strong>The fate of the employee-side payroll tax cut along with a host of tax extenders and other expired provisions could be decided in coming weeks. A conference committee of House and Senate members is negotiating a full-year extension of the payroll tax cut and could add some or all of the tax extenders to a final package. Lawmakers also could extend the payroll tax cut without acting on any tax incentives.</p><p><strong>Payroll tax cut</strong></p><p>The Temporary Payroll Tax Cut Continuation Act of 2011 extended the employee-side OASDI tax cut through the end of February 2012. The employee-share of OASDI taxes is 4.2 percent for the two-month period, rather than 6.2 percent. The employer-share of OASDI taxes remains at 6.2 percent for the two month period. Self-employed individuals also benefit from a two percentage point reduction in OASDI taxes.</p><p>Unless extended, the employee-share of OASDI taxes is scheduled to revert to 6.2 percent after February 29, 2012. The White House and the leaders of the two parties in Congress agree that the payroll tax cut should be extended a full-year. They disagree, however, how to pay for the extension; even if it should be paid for at all.</p><p>Congress could extend the two-month payroll tax cut through the end of 2012 without paying for it. The 2011 payroll tax cut was unfunded. Congress appropriated to the Social Security trust funds amounts equal to the reduction in payroll tax revenues. The 2011 payroll tax cut was estimated by the Congressional Budget Office cost approximately $111 billion. Extending it through the end of 2012 is estimated to cost just as much if not more.</p><p>House Republicans reportedly have proposed a number of revenue raisers to offset the cost of extending the payroll tax cut through the end of 2012. One GOP proposal would extend the current pay freeze for employees of the federal government. Another GOP proposal would require higher-income individuals to pay increased Medicare premiums.</p><p>One possible revenue raiser, increasingly under discussion by Democrats, is a change in the taxation of so-called carried interest. Current law generally taxes carried interest as capital gains and not as ordinary income. Past efforts to change the tax treatment of carried interest have failed to pass Congress.</p><p><strong>Extenders</strong></p><p>The so-called tax extenders, popular but temporary tax provisions, expired at the end of 2011. Many taxpayers are surprised to learn that their particular tax break, whether it be the state or local sales tax deduction, the teachers’ classroom expense deduction, or the research tax credit, are temporary. The extenders have been routinely revived many times in the past. This year, however, could be different. Faced with record federal budget deficits, lawmakers may decide to extend only some of the expired provisions.</p><p><strong>President Obama’s FY 2013 proposals</strong></p><p>President Obama is expected to release his fiscal year (FY) 2013 federal budget proposals in early February, which will reignite debate over the Bush-era tax cuts. President Obama is expected to urge Congress to allow the Bush-era tax cuts to expire after 2012 for higher-income taxpayers, which President Obama defines as individuals earning more than $200,000 or families earning more than $250,000. In recent weeks, there has been speculation that President Obama may revisit those definitions in his FY 2013 budget, possibly raising the amounts.</p><p>Few Capitol Hill observers expect Congress to take any action on the Bush-era tax cuts before the November elections. Instead, Congress may take up some of President Obama’s other proposals. As in past budgets, President Obama will likely propose to extend some energy tax breaks for individuals and businesses, extend tax incentives for education and provide some targeted-tax breaks to businesses. President Obama has also promised to introduce proposals to encourage U.S. companies to “insource” jobs at home.</p><p>On some issues, such as energy and education, lawmakers may find common ground but negotiations are likely to go down to the wire. Our office will keep you posted of developments.</p><p><em>If you have any questions about the payroll tax cut, tax extenders or the various tax proposals under discussion, please contact our office.</em></p> <div align="JUSTIFY"><hr noshade="noshade" size="1"><font size="1" face="Arial">If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.</font></div> <div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('680');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="679"></a> <a href = "javascript: void(0)" onClick="showhidearticle('679');" class ="news_link">IRS launches third version of voluntary offshore disclosure program</a> </div> <div class = "news_description" id="ns679" style="display:block;">The IRS reopened its offshore voluntary disclosure program in early 2012 in response to what the government described as strong interest among taxpayers. The reopened program, the third of its type in recent years, encourages taxpayers with unreported foreign accounts to make full disclosures in exchange for a reduced penalty framework. Like its predecessors, the terms and conditions of the reopened program are very complex. The IRS has promised to provide more details. In the meantime, the prior offshore disclosure programs are guides to how the IRS intends to implement the third, reopened program.</div> <div class = "news_description" id="nl679" style="display:none;"><p><strong></strong>The IRS reopened its offshore voluntary disclosure program in early 2012 in response to what the government described as strong interest among taxpayers. The reopened program, the third of its type in recent years, encourages taxpayers with unreported foreign accounts to make full disclosures in exchange for a reduced penalty framework. Like its predecessors, the terms and conditions of the reopened program are very complex. The IRS has promised to provide more details. In the meantime, the prior offshore disclosure programs are guides to how the IRS intends to implement the third, reopened program.</p><p><strong>Previous disclosure programs</strong></p><p>The IRS launched two previous offshore disclosure initiatives: one in 2009 and another in 2011. Both programs offered reduced penalties in exchange for full disclosure. In early 2012, the IRS reported it received 33,000 voluntary disclosures from the 2009 and 2011 offshore initiatives. The government has collected over $4.4 billion from the 2009 and 2011 programs. The IRS predicted it will collect more revenue as it continues to work cases.</p><p><strong>Reopened program</strong></p><p>The reopened program operates very similarly to the 2009 and 2011 programs but with some key differences. The previous programs were temporary. The 2011 program ended in mid-September 2011. The reopened program has no set end date. The IRS cautioned, however, that it could close the program at some future date. The decision to end the program is solely at the discretion of the IRS.</p><p>The reopened program requires taxpayers to file all original and amended tax returns and include payment for back-taxes and interest for up to eight years as well as pay accuracy-related and/or delinquency penalties. Additionally, taxpayers must pay a penalty of 27.5 percent of the highest aggregate balance in foreign bank accounts/entities or value of foreign assets during the eight full tax years prior to the disclosure. In comparison, the highest penalty in the 2011 program was 25 percent. IRS officials have said that the penalty was increased because the agency does not want to reward taxpayers who did not participate in the 2009 or 2011 disclosure programs because they anticipated that a future penalty would be lower.</p><p>In limited circumstances, taxpayers may qualify for a 12.5 percent penalty or a five percent penalty. Generally, taxpayers whose offshore accounts or assets did not surpass $75,000 in any calendar year may qualify for the 12.5 percent penalty.</p><p>The requirements for the five percent penalty are very narrow. The IRS has explained that taxpayers must meet four conditions: (1) The taxpayer did not open or cause the account to be opened; (2) the taxpayer exercised minimal, infrequent contact with the account, for example, to request the account balance, or update account holder information such as a change in address, contact person, or email address; (3) except for a withdrawal closing the account and transferring the funds to an account in the United States, the taxpayer did not withdraw more than $1,000 from the account in any year for which the taxpayer was non-compliant; and (4) the taxpayer can show that all applicable U.S. taxes have been paid on funds deposited to the account (only account earnings have escaped U.S. taxation).</p><p>The penalty amounts in the reopened program are not set in stone, the IRS cautioned. It may eventually increase penalties in the program for all or some taxpayers or defined classes of taxpayers.</p><p><strong>Quiet disclosures</strong></p><p>One goal of the three programs is to caution taxpayers against so-called “quiet disclosures.” A quiet disclosure occurs when a taxpayer files an amended return and pays any tax delinquency without making a formal voluntary disclosure. The IRS warned taxpayers making quiet disclosures that they risked being sanctioned to the fullest extent allowed by law.</p><p><strong>Critics</strong></p><p>The offshore disclosure programs were not without their critics. The National Taxpayer Advocate recently told Congress that the IRS should streamline what is a very complicated process. The National Taxpayer Advocate also reported that IRS examiners were assuming that all violations were willful unless a taxpayer presented evidence to the contrary. It is possible that the IRS may revisit some of the terms and conditions of the reopened program in light of the National Taxpayer Advocate’s report.</p><p><em>If you have any questions about the reopened offshore voluntary disclosure program, please contact our office.</em></p> <div align="JUSTIFY"><hr noshade="noshade" size="1"><font size="1" face="Arial">If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.</font></div> <div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('679');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="678"></a> <a href = "javascript: void(0)" onClick="showhidearticle('678');" class ="news_link">FAQ: What tax breaks come with raising a child?</a> </div> <div class = "news_description" id="ns678" style="display:block;">Taxpayers with children should be aware of the numerous tax breaks for which they may qualify. Among them are: the dependency exemption, child tax credit, child care credit, and adoption credit. As they get older, education tax credits for higher education may be available; as is a new tax code requirement for employer-sponsored health care to cover young adults up to age 26. Employers of parents with young children may also qualify for the child care assistance credit.</div> <div class = "news_description" id="nl678" style="display:none;"><p><strong></strong>Taxpayers with children should be aware of the numerous tax breaks for which they may qualify. Among them are: the dependency exemption, child tax credit, child care credit, and adoption credit. As they get older, education tax credits for higher education may be available; as is a new tax code requirement for employer-sponsored health care to cover young adults up to age 26. Employers of parents with young children may also qualify for the child care assistance credit.</p><p><strong>Dependency Exemption</strong></p><p>In addition to the personal exemption an individual taxpayer may take for him or herself to reduce taxable income (Line 42 on Form 1040), that taxpayer may also take an exemption for each qualifying dependent who has lived with the taxpayer for more than half of the tax year. A dependent may be a natural child, step-child, step-sibling, half-sibling, adopted child, eligible foster child, or grandchild, and generally must be under age 19, a full-time student under age 24, or have special needs. The amount of the exemption is the same as the taxpayer’s personal exemption, $3,700 for the 2011 tax year and $3,800 for the 2012 tax year.</p><p><strong>Child Tax Credit</strong></p><p>Parents of children who are under age 17 at the end of the tax year may qualify for a refundable $1,000 tax credit. The credit is a dollar-for-dollar reduction of tax liability, and may be listed on Line 51 of Form 1040. For every $1,000 of adjusted gross income above the threshold limit ($110,000 for married joint filers; $75,000 for single filers), the amount of the credit decreases by $50.</p><p><strong>Child and Dependent Care Credit</strong></p><p>If a taxpayer must pay for childcare for a child under age 13 in order to pursue or maintain gainful employment, he or she may claim up to $3,000 of his or her eligible expenses for dependent care. If one parent stays home full-time, however, no child care costs are eligible for the credit.</p><p><strong>Adoption Credit</strong></p><p>Taxpayers who have incurred qualified adoption expenses in 2011 may claim either a $13,360 credit against tax owed or a $13,360 income exclusion if the taxpayer has received payments or reimbursements from his or her employer for adoption expenses. For 2012, the amount of the credit will decrease to $12,650, and in 2013 to $5,000.</p><p><strong>Higher Education Credits</strong></p><p>There are two education-related credits available for 2012: the American Opportunity credit and the lifetime learning credit. The American Opportunity credit amount is the sum of 100 percent of the first $2,000 of qualified tuition and related expenses plus 25 percent of the next $2,000 of qualified tuition and related expenses, for a total maximum credit of $2,500 per eligible student per year. The credit is available for the first four years of a student's post-secondary education. The credit amount phases out ratably for taxpayers with modified AGI between $80,000 and $90,000 ($160,000 and $180,000 for joint filers). The lifetime learning credit is equal to 20 percent of the amount of qualified tuition expenses paid on the first $10,000 of tuition per family. The phaseout for 2012 ranges from $52,000 to $62,000 ($104,000 to $124,000 for joint filers). Parents also find tax relief in saving for college though Coverdell accounts, section 529 plans and specified U.S.. savings bonds.</p><p><strong>Extended Health Care Coverage</strong></p><p>Effective since September 23, 2010, the new health care law requires plans to provide coverage for children until they attain age 26. Further, effective on or after March 30, 2010, children under the age of 27 are considered dependents of a taxpayer for purposes of the general exclusion from income for reimbursements for medical care expenses of an employee, spouse, and dependents under an employer-provided accident or health plan. Therefore, a plan must provide coverage to a child who is still a dependent up to age 26; but can do so up to age 27 without income tax consequences. A child includes a son, daughter, stepson, or stepdaughter of the taxpayer; a foster child placed with the taxpayer by an authorized placement agency or by judgment, decree, or other order of any court of competent jurisdiction; and a legally adopted child of the taxpayer or a child who has been lawfully placed with the taxpayer for legal adoption.</p><p><strong>Child Care Assistance Credit (for businesses)</strong></p><p>Employers may take up to $150,000 of the eligible costs of providing employees with child care assistance as tax credit. These costs may include a portion of the costs of acquiring, constructing, improving, and operating a child care facility.</p><p><em>If you have any questions about these provisions and how they may benefit you, please contact our office.</em></p> <div align="JUSTIFY"><hr noshade="noshade" size="1"><font size="1" face="Arial">If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.</font></div> <div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('678');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="677"></a> <a href = "javascript: void(0)" onClick="showhidearticle('677');" class ="news_link">How Do I... Receive my tax refund that the IRS used to offset my spouse's debt?</a> </div> <div class = "news_description" id="ns677" style="display:block;">The Treasury Department is authorized to offset a taxpayer’s tax refund to satisfy certain debts. A spouse who believes that his or her portion of the refund should not be used to offset the debt that the other spouse owes may request a refund from the IRS.</div> <div class = "news_description" id="nl677" style="display:none;"><p>The Treasury Department is authorized to offset a taxpayer’s tax refund to satisfy certain debts. A spouse who believes that his or her portion of the refund should not be used to offset the debt that the other spouse owes may request a refund from the IRS.</p><p><strong>Offset</strong></p><p>If an individual owes money to the federal government because of a delinquent debt, the Treasury Department’s Financial Management Service (FMS) can offset that individual's tax refund (and certain other federal payments) to satisfy the debt. The debtor will be notified in advance of the offset.</p><p>A taxpayer’s refund may be reduced by FMS and offset to pay:</p><ul><li>Past-due child support</li><li>Federal agency non-tax debts</li><li>State income tax obligations, or</li><li>Certain unemployment compensation debts owed a state.</li></ul><p>FMS advises taxpayers by written notice of an offset. FMS has explained that the notice will reflect the original refund amount, the taxpayer’s offset amount, the agency receiving the payment, and the address and telephone number of the agency. FMS will notify the IRS of the amount taken from your refund.</p><p><strong>Form 8379</strong></p><p>If a taxpayer filed a joint return and is not responsible for the debt of his or her spouse, the taxpayer may request his or her portion of the refund by filing Form 8379, Injured Spouse Allocation, with the IRS. Form 8379 may be filed with the original return or by itself after the taxpayer is aware of the offset.</p><p>The IRS has instructed taxpayers filing Form 8379 by itself to attach a copy of all Forms W-2 and W-2G for both spouses, and any Forms 1099 showing federal income tax withholding to Form 8379. Failure to attach these items may result in a delay in processing by the IRS.</p><p>The IRS has reported on its website that it generally processes Forms 8379 that are filed after a joint return has been filed in approximately eight weeks. The timeframe for processing a Form 8379 that is attached to a joint return is approximately 11 weeks (14 weeks if the joint return is filed on paper).</p> <div align="JUSTIFY"><hr noshade="noshade" size="1"><font size="1" face="Arial">If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.</font></div> <div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('677');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="676"></a> <a href = "javascript: void(0)" onClick="showhidearticle('676');" class ="news_link">February 2012 tax compliance calendar</a> </div> <div class = "news_description" id="ns676" style="display:block;">As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of February 2012.</div> <div class = "news_description" id="nl676" style="display:none;"><p>As an individual or business, it is your responsibility to be aware of and to meet your tax filing/reporting deadlines. This calendar summarizes important tax reporting and filing data for individuals, businesses and other taxpayers for the month of February 2012.</p><p><strong>February 1</strong></p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates January 25–27.</p><p><strong>February 3</strong></p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates January 28–31.</p><p><strong>February 8</strong></p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates February 1–3.</p><p><strong>February 10</strong></p><p><em>Employees who work for tips. </em>Employees who received $20 or more in tips during November must report them to their employer using Form 4070.</p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates February 4–7.</p><p><strong>February 15</strong></p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates February 8–10.</p><p><em>Monthly depositors. </em>Monthly depositors must deposit employment taxes for payments in January.</p><p><strong>February 17</strong></p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates February 11–14.</p><p><strong>February 23</strong></p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates February 15–17.</p><p><strong>February 24</strong></p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates February 18–21.</p><p><strong>February 29</strong></p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates February 22–24.</p><p><strong>March 2</strong></p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates February 25–28.</p><p><strong>March 7</strong></p><p><em>Employers. </em>Semi-weekly depositors must deposit employment taxes for payroll dates February 29–March 2.</p> <div align="JUSTIFY"><hr noshade="noshade" size="1"><font size="1" face="Arial">If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.</font></div> <div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('676');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="637"></a> <a href = "javascript: void(0)" onClick="showhidearticle('637');" class ="news_link">2011 year-end tax planning for businesses: bonus depreciation, expensing, and more available</a> </div> <div class = "news_description" id="ns637" style="display:block;">Many tax benefits for business will either expire at the end of 2011 or become less valuable after 2011. Two of the most important benefits are bonus depreciation and Code Sec. 179 expensing. Both apply to investments in tangible property that can be depreciated. Other sunsetting opportunities might also be considered.</div> <div class = "news_description" id="nl637" style="display:none;"><p>Many tax benefits for business will either expire at the end of 2011 or become less valuable after 2011. Two of the most important benefits are bonus depreciation and Code Sec. 179 expensing. Both apply to investments in tangible property that can be depreciated. Other sunsetting opportunities might also be considered.</p><p><strong>Bonus depreciation</strong></p><p>Bonus depreciation is 100 percent for 2011. A business can write-off, in the first year, the entire cost of its investment in new depreciable property. Under current law, bonus depreciation will decrease to 50 percent in 2012 and will terminate after 2012. (These deadlines are extended one year for certain transportation property and property with a longer production period). President Obama has proposed to extend 100 percent bonus depreciation through 2012. Normally, this would have a good chance of being approved, but with the focus on deficit reduction and the linking of tax benefits to tax increases, it is not at all clear what will happen.</p><p>So, if a business has income in 2011 and plans to invest in depreciable property, it is worthwhile to consider making that investment in 2011, while the available write-off is at its highest. Under normal depreciation rules, a business will still be able to claim accelerated write-offs, but this may be 50 percent or less of the cost of the property, with the balance written-off over several years, instead of all in one year.</p><p>Planning for bonus depreciation is important because the property must satisfy placed-in-service and acquisition date requirements. Property is placed in service when it is in a condition or state of readiness on a regular ongoing basis for a specifically assigned function in a trade or business. The acquisition date rules may vary. For 2011, property is acquired when the taxpayer incurs or pays its cost. This could occur when the property is delivered, but it could also be when title to the property passes. For 2012, property is acquired when the taxpayer takes physical possession of the property.</p><p><strong>Code Sec. 179 expensing</strong></p><p>Code Sec. 179 expensing (first-year writeoff) has been around for awhile, but at higher amounts more recently. While there is no limit on bonus depreciation, expensing is limited to a statutory amount. For 2011, this amount is $500,000. It is scheduled to drop to $125,000 in 2012 and to $25,000 after 2012 (adjusted for inflation). Moreover, the cap is reduced for the amount of total investment in Code Sec. 179 property. The phaseout threshold is $2 million for 2011, dropping to $500,000 for 2012 and $200,000 for 2013 and subsequent years. For businesses who want to invest in depreciable property, the payoff is definitely greater in 2011. Taxpayers taking advantage of expensing should write off assets that would otherwise have the longest recovery periods.</p><p><strong>Other 2011 benefits</strong></p><p>Some other important benefits expire at the end of 2011 or become less valuable. A significant benefit in 2011 is the 100 percent exclusion for small business stock. After 2012, the normal exclusion rate will drop to 50 percent, although it has been 75 percent in recent years. The exclusion is based on the year the stock is acquired; the stock must be held for five years before sold and satisfy other requirements.</p><p>Another important benefit is the 20 percent research credit. The credit has been extended one year at a time for a long period, so it is likely to be extended again. Nevertheless, until Congress acts, there is some uncertainty for research expenses incurred after 2011.</p><p><strong>Conclusion</strong></p><p>To maximize the benefits of 2011 year-end tax planning, a business must be proactive in determining what upcoming capital investments might be accelerated into this year and what investments become cost effective because of the immediate tax benefits that they offer. Some business-related tax benefits will be less valuable after 2011; for others, it is not clear what Congress and the administration will do in terms of surprising taxpayers with a year-end tax bill. Please contact this office if you have any questions over how year-end tax strategies that begin now and continue through December can help maximize tax benefits for your business.</p> <div align="JUSTIFY"><hr noshade="noshade" size="1"><font size="1" face="Arial">If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.</font></div> <div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('637');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="600"></a> <a href = "javascript: void(0)" onClick="showhidearticle('600');" class ="news_link">Actual vehicle expense method may help offset higher gas prices</a> </div> <div class = "news_description" id="ns600" style="display:block;">As gasoline prices have climbed in 2011, many taxpayers who use a vehicle for business purposes are looking for the IRS to make a mid-year adjustment to the standard mileage rate. In the meantime, taxpayers should review the benefits of using the actual expense method to calculate their deduction. The actual expense method, while requiring careful recordkeeping, may help offset the cost of high gas prices if the IRS does not make a mid-year change to the standard mileage rate. Even if it does, you might still find yourself better off using the actual expense method, especially if your vehicle also qualifies for bonus depreciation.</div> <div class = "news_description" id="nl600" style="display:none;"><p>As gasoline prices have climbed in 2011, many taxpayers who use a vehicle for business purposes are looking for the IRS to make a mid-year adjustment to the standard mileage rate. In the meantime, taxpayers should review the benefits of using the actual expense method to calculate their deduction. The actual expense method, while requiring careful recordkeeping, may help offset the cost of high gas prices if the IRS does not make a mid-year change to the standard mileage rate. Even if it does, you might still find yourself better off using the actual expense method, especially if your vehicle also qualifies for bonus depreciation.</p><p><strong>Two methods</strong></p><p>Taxpayers can calculate the amount of a deductible vehicle expense using one of two methods:</p><ul><li><div>Standard mileage rate</div></li><li><div>Actual expense method</div></li></ul><p>Under the standard mileage rate, taxpayers calculate the amount of the allowable deduction by multiplying all business miles driven during the year by the standard mileage rate. One of the chief attractions of the standard mileage rate is its ease of use. Taxpayers do not have to substantiate expense amounts; however, they must substantiate business purpose and other items. There are also limitations on use of the business standard mileage rate.</p><p>The standard mileage rate for 2011 for business use of a car (van, pickup or panel truck) is 51 cents-per-mile. The IRS calculates the standard mileage rate on an annual study of the fixed and variable costs of operating an automobile. The IRS set the standard mileage rate for 2011 in late 2010 when gasoline prices were lower than today. It is a flat amount, whether or not your vehicle is fuel efficient, operates on premium grade fuel, is brand new or ten years old, or is subject to high repair bills.</p><p>During past spikes in gasoline prices, the IRS has made a mid-year change to the standard mileage rate for business use of a vehicle. In 2008, the IRS increased the business standard mileage rate from 50.5 cents-per-mile to 58.5 cents-per-mile for last six months of 2008 because of high gasoline prices. The IRS made a similar mid-year adjustment in 2005 when it increased the business standard mileage rate after Hurricane Katrina.</p><p>At this time, it is unclear if the IRS will make a similar mid-year adjustment in 2011. IRS officials generally have declined to make any predictions. If the IRS does make a mid-year change, it will likely do so in late June, so the higher rate can apply to the last six months of 2011.</p><p><strong>Actual expense method</strong></p><p>Rather than rely on a mid-year adjustment from the IRS, which might not come, it's a good idea to compare the actual vehicle costs versus the business standard mileage rate. Taxpayers who use the actual expense method must keep track of all costs related to the vehicle during the year. The cost of operating a vehicle includes these expenses:</p><ul><li><div>Gasoline</div></li><li><div>Repair and maintenance costs</div></li><li><div>Cleaning</div></li><li><div>Tires</div></li><li><div>Depreciation</div></li><li><div>Lease payments (if the taxpayer leases the vehicle)</div></li><li><div>Interest on a vehicle loan</div></li><li><div>Insurance</div></li><li><div>Personal property taxes on the vehicle</div></li></ul><p>"Doing the math" this year in weighing whether to take the actual expense method not only should factor in the cost of gasoline but also what depreciation or expensing deductions you will be gaining by using the actual expense method. Enhanced bonus depreciation and enhanced "section 179" expensing for 2011 can increase your deduction for a newly-purchased vehicle in its first year tremendously if the actual expense method is elected.</p><p>Certain other costs are deductible whether you take the actual expense method or the standard mileage rate. This group includes parking charges, garage fees and tolls. Expenses incurred for the personal use of your vehicle are generally not deductible. An allocation must be made when the vehicle is used partly for personal purposes</p><p><strong>Switching methods</strong></p><p>Once actual depreciation in excess of straight-line has been claimed on a vehicle, the standard mileage rate cannot be used for the vehicle in any future year. Absent that prohibition (which usually is triggered if depreciation is taken), a business can switch between the standard mileage rate and actual expense methods from year to year. Businesses that switch methods now cannot make change methods effective in mid-year; you must apply one method retroactively from January 1.</p><p><strong>Recordkeeping</strong></p><p>The actual expense method requires taxpayers to substantiate every expense. This recordkeeping requirement can be challenging. For example, taxpayers who fill-up often at the gas pump need to keep a record of every purchase. The same is true for tune-ups and other maintenance and repair activity. One way to simplify recordkeeping is to charge all vehicle related expenses to one credit card.</p>Our office will keep you posted of developments. If you have any questions about the actual expense method or the business standard mileage rate, please contact our office. <div align="JUSTIFY"><hr noshade="noshade" size="1"><font size="1" face="Arial">If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.</font></div> <div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('600');">Close</a></div> </div> <br /> <div class = "news_title"> <a name="583"></a> <a href = "javascript: void(0)" onClick="showhidearticle('583');" class ="news_link">Next year's tax return starts with good recordkeeping</a> </div> <div class = "news_description" id="ns583" style="display:block;">As the 2011 tax filing season comes to an end, now is a good time to begin thinking about next year's returns. While it may seem early to be preparing for 2012, taking some time now to review your recordkeeping will pay off when it comes time to file next year.</div> <div class = "news_description" id="nl583" style="display:none;"><p>As the 2011 tax filing season comes to an end, now is a good time to begin thinking about next year's returns. While it may seem early to be preparing for 2012, taking some time now to review your recordkeeping will pay off when it comes time to file next year.</p> <p>Taxpayers are required to keep accurate, permanent books and records so as to be able to determine the various types of income, gains, losses, costs, expenses and other amounts that affect their income tax liability for the year. The IRS generally does not require taxpayers to keep records in a particular way, and recordkeeping does not have to be complicated. However, there are some specific recordkeeping requirements that taxpayers should keep in mind throughout the year.</p> <p><strong>Business Expense Deductions</strong></p> <p>A business can choose any recordkeeping system suited to their business that clearly shows income and expenses. The type of business generally affects the type of records a business needs to keep for federal tax purposes. Purchases, sales, payroll, and other transactions that incur in a business generate supporting documents. Supporting documents include sales slips, paid bills, invoices, receipts, deposit slips, and canceled checks. Supporting documents for business expenses should show the amount paid and that the amount was for a business expense. Documents for expenses include canceled checks; cash register tapes; account statements; credit card sales slips; invoices; and petty cash slips for small cash payments.</p> <p><em>The Cohan rule. </em>A taxpayer generally has the burden of proving that he is entitled to deduct an amount as a business expense or for any other reason. However, a taxpayer whose records or other proof is not adequate to substantiate a claimed deduction may be allowed to deduct an estimated amount under the so-called <em>Cohan</em> rule. Under this rule, if a taxpayer has no records to provide the amount of a business expense deduction, but a court is satisfied that the taxpayer actually incurred some expenses, the court may make an allowance based on an estimate, if there is some rational basis for doing so.</p> <p>However, there are special recordkeeping requirements for travel, transportation, entertainment, gifts and listed property, which includes passenger automobiles, entertainment, recreational and amusement property, computers and peripheral equipment, and any other property specified by regulation. The <em>Cohan</em> rule does not apply to those expenses. For those items, taxpayers must substantiate each element of an expenditure or use of property by adequate records or by sufficient evidence corroborating the taxpayer's own statement.</p> <p class="NoSpacing"><strong>Individuals</strong></p> <p class="NoSpacing"> </p> <ul> <li> <div class="NoSpacing">Record keeping is not just for businesses. The IRS recommends that individuals keep the following records:</div></li> <li> <div class="NoSpacing"><em>Copies of Tax Returns.</em> Old tax returns are useful in preparing current returns and are necessary when filing an amended return.</div></li> <li> <div class="NoSpacing"><em>Adoption Credit and Adoption Exclusion.</em> Taxpayers should maintain records to support any adoption credit or adoption assistance program exclusion.</div></li> <li> <div class="NoSpacing"><em>Employee Expenses.</em> Travel, entertainment and gift expenses must be substantiated through appropriate proof. Receipts should be retained and a log may be kept for items for which there is no receipt. Similarly, written records should be maintained for business mileage driven, business purpose of the trip and car expenses for business use of a car.<a name="FR12400AA0092000427788"></a></div></li> <li> <div class="NoSpacing"><em>Business Use of Home.</em> Records must show the part of the taxpayer's home used for business and that such use is exclusive. Records are also needed to show the depreciation and expenses for the business part of the home.<a name="FR12500AA0092000427788"></a></div></li> <li> <div class="NoSpacing"><em>Capital Gains and Losses.</em> Records must be kept showing the cost of acquiring a capital asset, when the asset was acquired, how the asset was used, and, if sold, the date of sale, the selling price and the expenses of the sale.</div></li> <li> <div class="NoSpacing"><em>Basis of Property.</em> Homeowners must keep records of the purchase price, any purchase expenses, the cost of home improvements and any basis adjustments, such as depreciation and deductible casualty losses.</div></li> <li> <div class="NoSpacing"><em>Basis of Property Received as a Gift.</em> A donee must have a record of the donor's adjusted basis in the property and the property's fair market value when it is given as a gift. The donee must also have a record of any gift tax the donor paid.</div></li> <li> <div class="NoSpacing"><em>Service Performed for Charitable Organizations.</em> The taxpayer should keep records of out-of-pocket expenses in performing work for charitable organizations to claim a deduction for such expenses.</div></li> <li> <div class="NoSpacing"><em>Pay Statements.</em> Taxpayers with deductible expenses withheld from their paychecks should keep their pay statements for a record of the expenses.</div></li> <li> <div class="NoSpacing"><em>Divorce Decree.</em> Taxpayers deducting alimony payments should keep canceled checks or financial account statements and a copy of the written separation agreement or the divorce, separate maintenance or support decree.</div></li></ul> <p class="NoSpacing"><strong><em>Don't forget receipts. </em></strong>In addition, the IRS recommends that the following receipts be kept:</p> <ul> <li> <div class="NoSpacing">Proof of medical and dental expenses;</div></li> <li> <div class="NoSpacing">Form W-2, Wage and Tax Statement, and canceled checks showing the amount of estimated tax payments;</div></li> <li> <div class="NoSpacing">Statements, notes, canceled checks and, if applicable, Form 1098, Mortgage Interest Statement, showing interest paid on a mortgage;</div></li> <li> <div class="NoSpacing">Canceled checks or receipts showing charitable contributions, and for contributions of $250 or more, an acknowledgment of the contribution from the charity or a pay stub or other acknowledgment from the employer if the contribution was made by deducting $250 or more from a single paycheck;</div></li> <li> <div class="NoSpacing">Receipts, canceled checks and other documentary evidence that evidence miscellaneous itemized deductions; and</div></li> <li> <div class="NoSpacing">Pay statements that show the amount of union dues paid.<a name="FR12600AA0092000427788"></a></div></li></ul> <p><strong>Electronic Records/Electronic Storage Systems</strong></p> <p>Records maintained in an electronic storage system, if compliant with IRS specifications, constitute records as required by the Code. These rules apply to taxpayers that maintain books and records by using an electronic storage system that either images their hard-copy books and records or transfers their computerized books and records to an electronic storage media, such as an optical disk.</p> <p>The electronic storage rules apply to all matters under the jurisdiction of the IRS including, but not limited to, income, excise, employment and estate and gift taxes, as well as employee plans and exempt organizations. A taxpayer's use of a third party, such as a service bureau or time-sharing service, to provide an electronic storage system for its books and records does not relieve the taxpayer of the responsibilities described in these rules. Unless otherwise provided under IRS rules and regulations, all the requirements that apply to hard-copy books and records apply as well to books and records that are stored electronically under these rules.</p> <div align="JUSTIFY"><hr noshade="noshade" size="1"><font size="1" face="Arial">If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.</font></div> <div style='float: right'><a href = "javascript: void(0)" onClick="hidearticle('583');">Close</a></div> </div> <br />  <BR> Certified Public Accountants <BR> <BR> <B></B><BR> 40 N. French Broad Avenue<BR> Asheville, NC 28801<BR> <BR> <B>Phone:</B> (828) 258-2323 <BR> <B>Fax:</B> (828) 258-9982<BR> <B>Email:</B> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> <B>Firm Contacts:</B><BR> <FONT SIZE=3><B>Additional Offices</B></FONT> <BR> <BR> <B><FONT COLOR=BLUE>Additional Office 1</FONT></B><BR> <B>Payroll/Bookkeeping</B><BR> <BR> <BR> Phone: <BR> Fax: <BR> Email: <BR> <BR> <B>Firm Contacts:</B> <BR> Cheryl L. Mathus Payroll Manager<BR> (828) 258-2323 ext. 302 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> Laura Rich (828) 258-2323 ext. 300 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> <BR> <B><FONT COLOR=BLUE>Additional Office 2</FONT></B><BR> <B>Accounting</B><BR> <BR> <BR> Phone: <BR> Fax: <BR> Email: <BR> <BR> <B>Firm Contacts:</B> <BR> Carol L. King , CPA<BR> NCSBCPA Certificate #18710<BR> (828) 258-2323 ext. 314 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> David L. Kline Managing Partner<BR> (828) 258-2323 ext. 315 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> Mary Diffendal , CPA<BR> Tax Manager, NCSBCPA Certificate #16120<BR> (828) 258-2323 ext. 306 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> Michael Ferguson , CPA<BR> NCSBCPA Certificate #33890<BR> (828) 258-2323 ext. 304 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> Lindsey Ferguson , CPA<BR> (828) 258-2323 ext. 305 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> Kimberly A. Kenny , CPA<BR> NCSBCPA Certificate #29090<BR> (828) 258-2323 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> Tim Moran , CPA<BR> NCSBCPA Certificate #35225<BR> (828) 258-2323 ext. 313 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> <BR> <B><FONT COLOR=BLUE>Additional Office 3</FONT></B><BR> <B>Administrative Support</B><BR> <BR> <BR> Phone: <BR> Fax: <BR> Email: <BR> <BR> <B>Firm Contacts:</B> <BR> Erik Pflaumbaum (828) 258-2323 ext. 316 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> Loretta Slack (828) 258-2323 ext. 317 <BR> <A HREF="mailto: erik@clkcpa.com">erik@clkcpa.com</A><BR> <BR> <BR> <B><A HREF="siteMap.html">Site Map</A></B> <BR> <BR> Designed by CCH Site Builder - <A HREF="http://www.cchwebsites.com">http://www.cchwebsites.com</A> </FONT>  </body>